EEI raises P6 billion from issuance of preferred shares

MANILA, Philippines — EEI Corp., the listed construction arm of the Yuchengco Group, has raised P6 billion from a recent offering of preferred shares.

The offering, which ran from Dec. 9 to 15, marks the successful return of the company to the equity capital markets since its P540 million stock rights offering in 2007.

Investors gobbled up the deal, which was 4.85 times oversubscribed compared to the base offer of P4 billion, EEI said in a disclosure yesterday.

“EEI’s preferred shares were oversubscribed with strong demand from institutional and retail investors who want exposure to a major player in the infrastructure development of the country” said RCBC Capital Corp., the sole issue manager for the offering.

EEI chief financial officer Cris Noel Torres said the company is grateful for the public’s faith and trust in EEI despite the challenges the company faced.

“This fundraising exercise positions the company to more actively participate in projects that contribute to nation building,” Torres said.

EEI will use proceeds from the issuance to fund its growth, particularly to finance current and future projects and capital expenditures for new equipment for its operations.